Nationwide’s buy-to-let lending subsidiary The Mortgage Works has taken a major decision on its existing exclusion policy by announcing that it will now start lending to landlords who have tenants on housing benefits.

Originally the lender, which has a BTL market share of approx: 20% , would judge each application on its merits, case – by- case and then they introduced the exclusion of landlords with tenants receiving benefits.

The lender says that the decision was taken to make a U-turn on the exclusion after they had many customers who expressed real concerns with their exclusion policy.

Nationwide divisional director of mortgages Richard Napier says: “The buy-to-Let sector is very important to us. We have listened to concerns that have been expressed by some of our customers, over the last few days, and believe this is the right way forward for The Mortgage Works, for landlords and for their tenants.”

 

Government figures state that around 26% of the 3.8 million households in private rented accommodation .are receiving housing benefits, approximately 982,000 households.